WORLD TRADE  
ORGANIZATION  G/SCM/N/155/AUS 
10 September 2007 
 (07-3769) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1  
of the GATT 1994 and Article 25 of the Agreement  
on Subsidies and Countervailing Measures  
  
AUSTRALIA 
 
 
 The following communication, dated 4 September 2007, is being circulated at the request of the Delegation of Australia.    
_______________ 
  
 The following notification provides details on federal and state pr ogrammes for financial 
years (FY) 2005/2006 and 2006/2007 (the financial year being from 1 July to 30 June).  In some cases, it is arguable whether these programmes are specific within the meaning of the Agreement on 
Subsidies and Countervailing Measures.  Howeve r, these have been included for the sake of 
transparency and without prejudgment of the legal st atus, effects or the nature of the measures under 
the Agreements.    G/SCM/N/155/AUS 
Page 2  
 
  TABLE OF CONTENTS 
    Page
 
 
FEDERAL PR OGRAMMES............................................................................................................. ...3 
I. DAIRY .......................................................................................................................... .............3  
II. ENVIRONMENTAL PROGRAMMES .................................................................................4  
III. FORESTRY....................................................................................................................... ........5  
IV. INNOVATION ..................................................................................................................... .....9 
V. INVEST AUSTRALIA ...........................................................................................................13  
VI. PASSENGER MOTOR VEHICLES ....................................................................................17  
VII. PHARMACEUTICALS .........................................................................................................18  
VIII.  REGIONAL DEVELOPMENT ............................................................................................20  
IX. RESOURCES ...................................................................................................................... ....21  
X. SUGAR .......................................................................................................................... ..........24  
XI. TEXTILES, CLOTHING & FOOTWEAR..........................................................................26  
XII. WHEAT .......................................................................................................................... .........29  
SUB-FEDERAL PROGRAMMES.....................................................................................................30  
I. AUSTRALIAN CAPITAL TERRITORY............................................................................31  
II. NEW SOUTH WALES...........................................................................................................32  
III. NORTHERN TERRITORY ..................................................................................................34  
IV. QUEENSLAND..................................................................................................................... ..35 
V. SOUTH AUSTRALIA............................................................................................................37  
VI. TASMANIA....................................................................................................................... ......38  
VII. VICTORIA ....................................................................................................................... .......39  
VIII.  WESTERN AUSTRALIA......................................................................................................40  
  G/SCM/N/155/AUS 
 Page 3 
 
 
  FEDERAL PROGRAMMES 
I. DAIRY 
1. Title of the subsidy  
  Dairy Industry Adjustment Package (DIAP).   
 
2. Period covered by the notification
 
  Financial years 2005/06 and 2006/07.    
3. Policy objective and/or purpose of the subsidy
 
  The DIAP is designed to facilitate adjustment in the dairy industry, as a result of complete 
deregulation of the milk market sector.    
4. Background and authority for the subsidy
 
  The Australian Government's DIAP was introduced from the beginning of the 2000/01 financial year to assist farmers adjust from the prev ious State-regulated dri nking milk arrangements to 
a commercially driven system.    
 The DIAP includes:   
 
• The Dairy Structural Adjustment Programme (D SAP), providing $1.63 billion in payments;  
and  
• Supplementary Dairy Assistance (SDA), providing an additional $139 million in payments.   
  Payments for DSAP and SDA are administered  to eligible dairy farmers by the Dairy 
Adjustment Authority (DAA), which was estab lished under the Australian Government's Dairy 
Industry Adjustment Act  2000.   
 5. Form of the subsidy
 
 
 Assistance under the DSAP and SDA is provided as a grant to eligible dairy producers.  There 
is no obligation for dairy producers to continue in the industry.     Payment eligibility for DSAP and SDA was based  on market milk deliveries during 1998/99.  
DSAP payments are made quarterly over eight years beginning with the 2000/2001 financial year.    
 Final payments under the DIAP are expected to be made by mid-2008.   
 6. To whom the funding is provided
 
  Funding is provided to eligible dairy producers based on market milk deliveries during 
1998/99.   
 7. Level of subsidy per unit
 
  Cost per unit value has not been provided as the financial assistance is based on historical 
milk production levels and is not re lated to production in the current or  future years.  An assessment 
of cost per unit is therefore an inappropriate measure of assistance in this case.   G/SCM/N/155/AUS 
Page 4  
 
  8. Duration
 
  From 8 July 2000 for a period of eight years.  The Dairy Adjustment Levy, which funds the DIAP, is expected to cease in the first quarter of 2009/10.    
9. Statistical data permitting an assessment of the trade effects
 
 
Year Milk Production 
(million litres) Total product Specific 
AMS (A$ million) 
2005/06 10,092 206.7 
2006/07 (estimate) 9,400 206.8 
  
II. ENVIRONMENTAL PROGRAMMES 
1. Title of the Subsidy
 
 
 Greenhouse Gas Abatement Programme (GGAP).   
 2. Period covered by the notification
 
  Financial year 2005/2006 – 2006/2007.   
 
3. Policy objective and/or purpose of the subsidy
 
  GGAP is a A$400 million Australian Government grants programme designed to deliver cost-
effective, large scale greenhouse gas abatement opportunities that were not addressed by existing 
climate change programmes, to assist Australia in meeting its Kyoto Protocol greenhouse gas 
emissions target commitment.    4. Background and authority of the subsidy
 
  The GGAP was announced as part of the Australian Government's A$800 million Measures 
for a Better Environment  package of climate change measures in May 1999, and has been 
administered by the Australian Greenhouse Office.    5. Form of the subsidy
 
 
 Participants receive grants that enable larg e-scale greenhouse gas abatement projects that are 
not financially viable in their own right to become so.    6. To whom the funding was provided
 
  GGAP has not been restricted to any particul ar stakeholder sector, although it has targeted a 
restricted number of projects that provide large-scale abatement.  Examples of GGAP projects include 
the development of technologies to recover and use co al mine gases, enhancing the energy efficiency 
of power stations, promoting the uptake of l ess greenhouse-intensive commercial refrigeration 
systems, promoting reduced car travel and uptake of walking, cycling and public transport, and 
supporting the uptake of less greenhouse-intensive tran sport fuels.  The GGAP has provided funding 
to recipients in each of these sectors.    G/SCM/N/155/AUS 
 Page 5 
 
 
  7. Level of subsidy per unit  
  Assistance provided in financial year  2005/2006 was A$13,369,667 million.   
 Assistance provided in financial year  2006/2007 was A$17,426,643 million.   
 
8. Duration
 
  1999 to 2010.    9. Statistical data permitting an assessment of the trade effects
 
 
 Not known.    
III. FORESTRY 
A. T
ASMANIAN FOREST INDUSTRY DEVELOPMENT PROGRAMME  
1. Title of the Subsidy  
  Tasmanian Forest Industry Development Programme.   
 2. Period covered by the notification
 
 
 Financial years 2005/06 and 2006/07.   
 3. Policy objective and/or purpose of the subsidy
 
  The objective of the programme is to assist the continuing development of a sustainable, 
efficient and value-adding native timber industr y in Tasmania following Government decisions 
affecting the quantity and quality of the timber resource.    4. Background and authority of the subsidy
 
  The programme is part of the Tasmanian Co mmunity Forest Agreement which was signed by 
the Prime Minister of Australia and the Premier of Tasmania on 13 May 2005.   
 5. Form of the subsidy
 
  The payments are in the form of grants to e ligible enterprises.  The grants usually represent 
25 per cent of the total cost of the investment a lthough grants of up to 50 per cent are considered for 
projects with industry-wide or State-wide significance.  The grants are paid on a reimbursement basis after the applicants have completed the investment.    6. To whom the funding was provided
 
 
 Businesses involved in the native timber indus try in Tasmania who have undertaken or are 
planning to undertake investments in timber processing and related activities are eligible for assistance.  Applications are assessed on a case-by-case basis against Government-approved guidelines.   G/SCM/N/155/AUS 
Page 6  
 
  7. Level of subsidy per unit
 
  The grants usually represent 25 per cent of the to tal cost of the investment although grants of 
up to 50 per cent are considered for projects with i ndustry-wide or State-wide significance.  Payments 
totalled A$0.87 million in 2005/06 an d A$4.67 million in 2006/07.   
 
8. Duration
 
  The programme commenced in 2005/06 and is sche duled to conclude at the end of 2007/08.   
 
9. Statistical data permitting an assessment of the trade effects
 
  Not known.    B. T
ASMANIAN COUNTRY SAWMILLS ASSISTANCE PROGRAMME  
1. Title of the Subsidy  
  Tasmanian Country Sawmills Assistance Programme.   
 2. Period covered by the notification
 
 
 Financial years 2005/06 and 2006/07.   
 3. Policy objective and/or purpose of the subsidy
 
  The objective of the programme is to assist c ountry sawmills to contribute to the continuing 
development of a sustainable, efficient and valu e-adding native timber industry in Tasmania following 
Government decisions affecting the quantit y and quality of the timber resource.   
 4. Background and authority of the subsidy
 
  The programme is part of the Tasmanian Co mmunity Forest Agreement which was signed by 
the Prime Minister of Australia and the Premier of Tasmania on 13 May 2005.   
 5. Form of the subsidy
 
  The payments are in the form of grants to eligible enterprises.  The grants represent 50 per 
cent of the total cost of the investment and are paid on a reimbursement basis after applicants have 
completed the investment.    6. To whom the funding was provided
 
  Businesses involved in the country sawmilling sector of the native timber industry in 
Tasmania who have undertaken or are planning to undertake invest ments in timber processing and 
related activities are eligible for assistance.  A pplications are assessed on a case-by-case basis against 
Government-approved guidelines.    7. Level of subsidy per unit
 
 
 The grants represent 50 per cent of the total co st of the investment by the applicant.  
Payments totalled A$0.10 million in 2005/ 06 and A$0.43 million in 2006/07.   
   G/SCM/N/155/AUS 
 Page 7 
 
 
  8. Duration  
  The programme commenced in 2005/06 and is sche duled to conclude at the end of 2007/08.   
 9. Statistical data permitting an assessment of the trade effects
 
 
 Not known.    C. T
ASMANIAN SOFTWOOD INDUSTRY DEVELOPMENT PROGRAMME  
1. Title of the Subsidy  
 
 Tasmanian Softwood Industry Development Programme.    2. Period covered by the notification
 
 
 Financial years 2005/06 and 2006/07.   
 3. Policy objective and/or purpose of the subsidy
 
  The objective of the programme is to assist the continuing development of a sustainable, efficient and value-adding softwood industry in Tasmania.    
 
4. Background and authority of the subsidy
 
  The programme is part of the Tasmanian Co mmunity Forest Agreement which was signed by 
the Prime Minister and the Premier of Tasmania on 13 May 2005.   
 
5. Form of the subsidy
 
  The payments are in the form of grants to e ligible enterprises.  The grants usually represent 
25 per cent of the total cost of the investment althoug h grants of up to 50 per cent are considered for 
projects with industry-wide or State-wide significance.  The grants are paid on a reimbursement basis 
after the applicants have completed the investment.   
 6. To whom the funding was provided
 
  Businesses involved in the native timber indus try in Tasmania who have undertaken or are 
planning to undertake investments in timber processing and related activities are eligible for 
assistance.  Applications are assessed on a case-by-case basis against Government-approved guidelines.    7. Level of subsidy per unit
 
 
 The grants usually represent 25 per cent of the to tal cost of the investment although grants of 
up to 50 per cent are considered for projects with i ndustry-wide or State-wide significance.  Payments 
totalled A$2.06 million in 2006/07.  Ther e were no payments in 2005/06.   
 8. Duration
 
 
 The programme commenced in 2005/06 and is sche duled to conclude at the end of 2007/08.   G/SCM/N/155/AUS 
Page 8  
 
  9. Statistical data permitting an assessment of the trade effects
 
  Not known.    D. F
ORESTRY ASSISTANCE PROGRAMME FOR WESTERN AUSTRALIA  
1. Title of the Subsidy  
  Forestry Assistance Programme for Western Australia.    2. Period covered by the notification
 
 
 The programme commenced in 2004/05 and concluded at the end of 2005/06.  3. Policy objective and/or purpose of the subsidy
 
 
 The objective of the programme was to assist the continuing development of a sustainable, 
efficient and value-adding native timber industr y in Western Australian following Government 
decisions affecting the quantity and quality of the timber resource.    4. Background and authority of the subsidy
 
 
 The programme was authorised by a Minister for Fisheries, Forestry and Conservation 
following approval from the Prime Minister of Australia.    5. Form of the subsidy
 
 
 The payments were in the form of grants to eligible enterprises.  The grants usually 
represented 25 per cent of the total cost of the i nvestment although grants of up to 50 per cent were 
considered for projects with industry-wide or Stat e-wide significance.  The grants were paid on a 
reimbursement basis after the applicants had completed the investment.    6. To whom the funding was provided
 
 
 Businesses involved in the native timber i ndustry in Western Australia who undertook 
investments in timber processing and related activities were eligible to apply.  Applications were 
assessed on a case-by-case basis against Government-approved guidelines.    
7. Level of subsidy per unit
 
  The grants usually represented 20 per cent of th e total cost of the investment although grants 
of up to 50 per cent were considered for projects with industry-wide or State-wide significance.  
Payments totalled A$8.69 million in 2005/ 06 and A$2.43 million in 2006/07.   
 
8. Duration
 
  The funding was available in 2004/05 and 2005/06.    9. Statistical data permitting an assessment of the trade effects
 
 
 Not known.      G/SCM/N/155/AUS 
 Page 9 
 
 
  IV. INNOVATION 
A. BIOTECHNOLOGY INNOVATION FUND 
1. Title of the Subsidy  
  Biotechnology Innovation Fund (BIF).   
 
2. Period covered by the notification
 
  Financial years 2005/06 and 2006/07.    
3. Policy objective and/or purpose of the subsidy
 
  The BIF fund aimed to increase the rate of  commercialisation of promising biotechnology 
developed in Australia by helping companies to move their projects beyond the research stage and 
into early commercialisation.  It provided financia l assistance to companies to demonstrate proof-of-
concept between the initial resear ch stage of a biotechnology project and the early stage of its 
commercialisation.    4. Background and authority of the subsidy
 
  The programme authority came from Ministerial Directions under the Industry Research and 
Development Act 1986 .  The current Ministerial Directions were issued in 2002.   
 5. Form of the subsidy
 
  Under the scheme, grants were awarded compe titively on the basis of eligibility and merit 
criteria of projects which best met the objectives of the scheme.   
 6. To whom the funding was provided
 
  Funding was provided to biotechnology compani es for costs associated with demonstration of 
proof of concept stage of projects.   
 
7. Level of subsidy per unit
 
  The total value was A$40 million for the life of the program.  Grants were limited to 50 per 
cent of eligible project costs up to a maximum of A$250,000 per project.  Grant recipients from the 
final round are still receiving committed scheduled payments.   
  The financial outlay for 2005/06 was A$5.1 m illion with 77 projects assisted.  The financial 
outlay for 2006/07 was A$0.5 million with 26 projects assisted.    8. Duration
 
 
 BIF commenced on 1 July 2001 and the final round closed in July 2004.  Grant recipients from the final round are in the process of completing their projects and receiving committed scheduled payments.    
 This programme has been replaced by the Commercial Ready Programme announced in the 
2004 Backing Australia's Ability – Building Our Futu re through Science and Innovation (see below).   G/SCM/N/155/AUS 
Page 10  
 
  9. Statistical data permitting an assessment of the trade effects
 
  Not known.    B. C
OMMERCIAL READY PROGRAMME  
1. Title of the Subsidy  
  Commercial Ready Programmes.    2. Period covered by the notification
 
 
 Financial years 2005/06 and 2006/07.    3. Policy objective and/or purpose of the subsidy
 
 
 The programme aims to encourage successful innovation by increasing the level of research 
and development, proof-of-concept and early st age commercialisation by Australian businesses, 
increase the international comp etitiveness of Australian businesses a nd foster greater collaboration 
between industry and industry and research institutions.   4. Background and authority of the subsidy
 
 
 The programme authority comes from Ministeria l Directions and Guidelines issued by the 
Minister for Industry, Tourism and Resources in  August 2004.  The programme was officially 
launched on 1 October 2004 as part of the Backing Australia's Ability – Building Our Future through 
Science and Innovation.    
 
5. Form of the subsidy  
  Under the scheme, grants are awarded compe titively on the basis of eligibility and merit 
criteria of projects which best meet the objectives of the scheme.    
6. To whom the funding was provided
 
  Funding is provided to companies undertaki ng research and development, proof-of-concept 
and/or early stage commercialisation activities.    
7. Level of subsidy per unit
 
  Grants are limited to 50 per cent of eligible project costs up to a maximum of A$5 million per project.     The financial outlay for 2005/06 was A$63.1 m illion with 177 projects assisted.  The financial 
outlay for 2006/07 was A$126.4 million with 317 projects assisted.   
 8. Duration
 
  The programme commenced on 1 October 2004 and is an ongoing programme.   
 
9. Statistical data permitting an assessment of the trade effects
 
  Not known.     G/SCM/N/155/AUS 
 Page 11 
 
 
  C. INDUSTRY COOPERATIVE INNOVATION PROGRAMME (ICIP) 
1. Title of the Subsidy  
  Industry Cooperative Innovation Programme (ICIP).    
2. Period covered by the notification
 
  Financial years 2005/06 and 2006/07.    3. Policy objective and/or purpose of the subsidy
 
 
 The programme is aimed at encouraging business-to-business cooperation on innovation 
projects that enhance productivity, growth a nd competitiveness in Australian industries.   
 4. Background and authority of the subsidy
 
 
 Authority for this programme comes from Minister ial Directions and Guidelines issued by the 
Minister for Industry, Tourism and Resources in Ma y 2005.  The programme was officially launched 
on 2 June 2005.    5. Form of the subsidy
 
 
 Under the scheme, grants are awarded for elig ible applications which are ranked as highly 
competitive in terms of merit criteria which reflect the objectives of the scheme.    6. To whom the funding was provided
 
 
 Funding is provided to eligible compani es involved in projects which aim to produce, 
commercialise or establish the commercial or techni cal viability of a new, clearly identified product, 
process or service including research and deve lopment, proof-of-concept and early-stage 
commercialisation up to a stage at which it can be brought to market.    
7. Level of subsidy per unit
 
  The total value is A$25 million for the life of  the programme, June 2005 to June 2011.  There 
are two streams of assistance;  with Stream A grants limited to 50 per cent of eligible project costs up to A$150,000 and Stream B grants limited to 50 per cent of eligible project costs up to A$3 million.   
 
 The financial outlay for 2005/06 was A$1.1 milli on with 14 projects assisted.  The financial 
outlay for 2006/07 was A$9.5 million with 29 projects assisted.    8. Duration
 
 
 ICIP commended June 2005 and will conclude in June 2011.   
9. Statistical data permitting an assessment of the trade effects  
  Not known.   G/SCM/N/155/AUS 
Page 12  
 
  D. R
ENEWABLE ENERGY DEVELOPMENT INITIATIVE PROGRAMME  
1. Title of the Subsidy  
  Renewable Energy Development Initiative Programme (REDI).    
2. Period covered by the notification
 
  Financial years 2005/06 and 2006/07.    3. Policy objective and/or purpose of the subsidy
 
 
 REDI is a competitive grant based progra mme supporting renewable energy innovation and 
its early-stage commercialisation.    4. Background and authority of the subsidy
 
 
 The programme was announced as part of th e energy white paper, Securing Australia's 
Energy Future in June 2004.    5. Form of the subsidy
 
 
Eligible projects are awarded matching fu nds of between A$50 000 and A$5 million to 
undertake new renewable energy technology activities.    6. To whom the funding was provided
 
 
 Funding is provided to eligible renewable energy technology projects extending up to three 
years which focus on the development of new re newable energy technology products, processes or 
services that have strong early-stage commercia lisation and emissions reduction potential.   
 7. Level of subsidy per unit
 
 
The total outlay of the programme is A$100 million between 2004/05 and 2010/11.  Projects 
of up to three years in duration are awarded ma tching grants of between A$50 000 and A$5 million 
for funding of up to 50 per cent of eligible expenditure.     The financial outlay for 2005/06 was A$3.8 million with 9 projects assisted.  The financial 
outlet for 2006/07 was A$9.5 million with 21 projects assisted.   
 8. Duration
 
  The programme was launched on 8 June 2005 and will conclude 2010/11.   
 
9. Statistical data permitting an assessment of the trade effects
 
  Not known.     G/SCM/N/155/AUS 
 Page 13 
 
 
  NEW / FUTURE GOVERNMENT INNOVATION PROGRAMMES 
 
E. COMMERCIAL READY PLUS 
1. Title of the Subsidy  
 
 Commercial Ready Plus.   
 2. Period covered by the notification
 
  The programme is commencing in 2007/08.   
 
3. Policy objective and/or purpose of the subsidy
 
  The programme has been developed to exte nd the support available to emerging Australian 
companies and spin-offs from public sector research organisations through matc hing grants of up to 
A$250 000 for research and development, proof of  concept and extended support for early stage 
commercialisation.    4. Background and authority of the subsidy
 
 
This programme is part of the Industry Statem ent 'Global Integration:  Changing Markets, 
New Opportunities' announced by the Prime Minister and Minister for Industry, Tourism and 
Resources in May 2007.    5. Form of the subsidy
 
 
 Under the scheme, grants are awarded compe titively on the basis of eligibility and merit 
criteria of projects which best meet the objectives of the scheme.    6. To whom the funding was provided
 
  The programme will commence in 2007/08.  No grants have been awarded to date.   
 
7. Level of subsidy per unit
 
  Firms will be able to apply for matching grants up to A$250 000.   
 
8. Duration
 
  Funding for this ongoing programme will commence in the financial year 2007/08.    9. Statistical data permitting an assessment of the trade effects
 
 
 Not known.   
 
V. INVEST AUSTRALIA 
A. INVEST AUSTRALIA : STRATEGIC INVESTMENT INCENTIVES  
1. Title of the subsidy  
 
 Invest Australia:  Strategic Investment Incentives.    G/SCM/N/155/AUS 
Page 14  
 
  2. Period covered by the notification
 
  Financial year 2005/06 and 2006/07.    3. Policy objective and/or purpose of the subsidy
 
 
 The Australian Government will consider the pr ovision of investment incentives to strategic 
investment projects in limited and special circumstances where the project would generate significant net economic and employment benefits for Australia.    
4. Background and authority for the subsidy
 
  Invest Australia is the Government's invest ment agency which was established in 1997 and is 
located in the Department of Industry, Touris m and Resources.  Invest Australia advises the 
Australian Government Cabinet, through its Minist er, on the possible use of incentives for strategic 
investment projects.  Incentives for major investment  projects are considered in limited and special 
circumstances and on a case by case basis, taking into account a published set of criteria.  The criteria 
include a requirement that the investment would not be likely to occur in Australia without the 
incentive, is viable without subsidy, and provid es significant net economic benefits for Australia 
(see G/SCM/Q2/AUS/20 of 13 August 2001).  Fundin g is allocated through the Budget Appropriation 
Bills in relevant years.   
 
5. Form of the subsidy
 
  The delivery mechanism for incentives vary from  case to case and has included grants for the 
provision of infrastructure services such as roads,  water supply, gas suppl y and power generation 
distribution.   
 6. To whom and how the subsidy is provided
 
  During the financial years 2005/6 and 2006/7, one grant of A$12.5 million was provided to 
support the development and enha ncement of skills development and technology diffusion within 
Australia's aerospace industry.   
 7. Level of subsidy per unit
 
  There are no programme funds allocated.  E ach proposal represents additional funding for 
which approval of the Australian G overnment Cabinet is required.   
 8. Duration of the subsidy
 
  The programme commenced in December 1997.  It as an ongoing programme.  The assistance 
is only in limited and special circumstances for strategic investment projects.   
 
9. Statistical data permitting an assessment of the trade effects
 
  Not known.    
B. S
TRUCTURAL ADJUSTMENT FUND FOR SOUTH AUSTRALIA  
1. Title of the Subsidy  
  Structural Adjustment Fund for South Australia (SAFSA).   
  G/SCM/N/155/AUS 
 Page 15 
 
 
  2. Period covered by the notification  
  Financial year 2003/04 to financial 2007/08.  The programme commenced in July 2004.    3. Policy objective and/or purpose of the subsidy
 
 
 The purpose of the SAFSA programme was to  support investment that would create 
sustainable new jobs in South Australia with a focus on the Adelaide area and particularly the 
southern districts of Adelaide.  The investment c ould be in a new facility or additional capacity that 
would enhance competitiveness.  It was not intende d to support infrastructure investment through the 
Fund except that which might be incidental to the new facility.   
  Projects which result in new jobs in South Au stralia at the expense of jobs elsewhere in 
Australia were not favoured.    
4. Background and authority of the subsidy
 
  SAFSA gave effect to the Prime Minister's  announcement of 21 May 2004 of a Federal 
Assistance Package for South Australia.  The project  operated under executive powers of the Minister 
for Industry, Tourism and Resources in consultation w ith the Prime Minister and the Ministers of the 
other central agencies.   
 
5. Form of the subsidy
 
  SAFSA Australia is a competitive grants progr amme.  The package combined labour market 
programme assistance tailored to meet the need s of displaced workers as well as support for new 
investment that will create sustainable job opportunities in South Australia.   
  The minimum value of projects was A$1 million and except in exceptional circumstances, and with the prior agreement of the Australian Minister for Industry, Tourism and Resources and 
South Australian Deputy Premier, the maximum grant would be A$10 million.    
 The following conditions applied:   
 
• a minimum commitment, exclusive of in-kind, by the proponent which at least matches the 
total amount of government funding available under SAFSA and other applicable government 
programmes;  and 
 
• funding approved shall not exceed 50 per cent of the projected capital costs.   
 6. To whom the funding was provided
 
  14 projects across a range of industry sectors.    
7. Level of subsidy per unit
 
  Investment support under the Fund was provided from a pooled fund to which the Australian Government contributed A$40 million and the So uth Australian Government A$5 million.   
 
8. Duration
 
 
 The programme commenced in July 2004 and app lications closed on 30 June 2006.  All grant 
funds must be provided by 30 June 2008.   G/SCM/N/155/AUS 
Page 16  
 
  9. Statistical data permitting an assessment of the trade effects
 
  Not known.    C. I
NNOVATION AND INVESTMENT FUND FOR SOUTH AUSTRALIA  
1. Title of the Subsidy  
  Innovation and Investment Fund for South Australia (IIFSA).   
 2. Period covered by the notification
 
 
 Financial year 2006/07 – Round One opened in November 2006 and Round 2 opened in 
March 2007.    3. Policy objective and/or purpose of the subsidy
 
 
 The purpose of the IIFSA programme is to su pport investment that will create sustainable 
new jobs in South Australia with a focus on the Ad elaide metropolitan area.  The investment could be 
in a new facility or additional capacity that woul d enhance competitiveness.  It is not intended to 
support infrastructure investment through the Fund excep t that which might be incidental to the new 
facility.   
 
 Projects which result in new jobs in South Au stralia at the expense of jobs elsewhere in 
Australia will not be favoured.    4. Background and authority of the subsidy
 
 
 The Fund gives effect to the Prime Minister's announcement of 14 September 2006 of assistance to South Australian industry following the announcement of the closure by Electrolux of some of its manufacturing operations in South Australia.  The project operates under executive 
powers of the Minister for Industry, Tourism and Resources in consultation with the Prime Minister 
and the Ministers of the other central agencies.   
 
5. Form of the subsidy
 
  IIFSA is a competitive grants programme.    
 The minimum value of projects is A$1 million and the minimum grant, A$500,000.  Except 
in special circumstances, and w ith the prior agreement of the Australian Minister for Industry, 
Tourism and Resources and South Australian Deputy Premier, the maximum grant will be 
A$5 million.     The following conditions apply: 
 
• a minimum commitment, exclusive of in-kind, by the proponent which at least matches the 
total amount of government funding available under IIFSA and other applicable government 
programmes; and 
 
• funding approved shall not exceed 50 per cent of the projected capital costs.    G/SCM/N/155/AUS 
 Page 17 
 
 
  6. To whom the funding was provided  
  Ten projects in a number of sectors have met the programme's criteria and were approved during the 2006/07 financial year for a grant.    
7. Level of subsidy per unit
 
  Total investment support under the Fund w ill be A$30 million, with the Australian 
Government contributing A$25 million and the Sout h Australian Government A$5 million.  No 
financial assistance has yet been provided to the ten companies.    
8. Duration
 
  The programme commenced in October 2006 and applications for the final round closed on 
11 May 2007.  All grant funds must be provided by 30 June 2010.   
 
9. Statistical data permitting an assessment of the trade effects
 
  Not known.    
VI. PASSENGER MOTOR VEHICLES 
1. Title of the Subsidy
 
  Automotive Competitiveness and Investment Scheme (ACIS).    2. Period covered by the notification
 
 
 Financial year 2005/06.  Information on ACIS for financial year 2006/07 is not yet available.   
 3. Policy objective and/or purpose of the subsidy
 
  ACIS is to promote competitiveness and enc ourage investment, R&D and innovation in the 
Australian automotive industry.   
 4. Background and authority of the subsidy
 
  ACIS Administration Act  1999 (No. 139, 1999);  ACIS (Unearned Credit Liability) Act  1999 
(No. 140, 1999);  and Customs Tariff Amendment (ACIS Implementation) Act  1999 (No. 141, 1999) 
establish the Automotive Competitiveness and Investme nt Scheme.  The administration/authority for 
the allocation of benefits under the scheme is the Department of Industry, Tourism and Resources.   
  In December 2002, the Government announ ced a post-2005 assistance package for the 
automotive industry which extends ACIS to 2015.   
 
5. Form of the subsidy
 
  Participants receive duty credits which can be  used to pay customs duty on certain eligible 
imports.  Duty credits can also be sold or transferred to a third party.   G/SCM/N/155/AUS 
Page 18  
 
  6. To whom the funding was provided
 
  Participants may be motor vehicle producers (MVPs), automotive component producers, automotive machine tools and tooling producers or automotive service providers.  For MVPs, duty credits are earned on the basis of a percentage of eligible production;  and eligible investments in 
plant and equipment.   
  For other participants, duty credits are earne d on the basis of a percentage of eligible 
investments in plant and equipment and eligible investments in research and development.   
 
 G/SCM/Q2/AUS/25 of 16 March 2004 provided deta ils of eligible imports and the types of 
eligible plant and equipment and eligible i nvestments in research and development.   
 7. Level of subsidy per unit
 
 
 Each participant's total benefits under ACIS ar e limited to 5 per cent of its eligible sales for 
the preceding year.     Assistance provided in financial y ear 2005/06 was A$508.586 million.   
 8. Duration
 
 
 1 January 2001 to 31 December 2015.    9. Statistical data permitting an assessment of the trade effects
 
 
 Not known.   
 
VII. PHARMACEUTICALS 
A. PHARMACEUTICAL INDUSTRY INVESTMENT PROGRAMME  
1. Title of the Subsidy  
 
 Pharmaceutical Industry Inv estment Programme (PIIP).   
 2. Period covered by the notification
 
  PIIP ceased on 30 June 2004.   
 
3. Policy objective and/or purpose of the subsidy
 
  The scheme was designed to compensate the pharm aceutical industry, in part, for the impact 
of the Federal Government exercising its m onopsony purchasing power under the Pharmaceutical 
Benefits Scheme which suppressed pharmac eutical prices paid to suppliers.   
 
4. Background and authority of the subsidy
 
  The scheme was approved by the Federal Government and announced by the Minister for Industry, Science and Tourism in April 1997.  The programme was administered by the 
Pharmaceutical Benefits Pricing Authority.    G/SCM/N/155/AUS 
 Page 19 
 
 
  5. Form of the subsidy  
  Participating companies were paid higher prices on nominated products supplied to the 
Pharmaceutical Benefits Scheme in return for those companies meeting commitments to undertake 
eligible activities in Australia, including productio n value added and research and development.   
 
6. To whom the funding was provided
 
  The programme ceased on 30 June 2004.  No funding was provided during 2005/06 or 2006/07.   
 
7. Level of subsidy per unit
 
  Payment was calculated at 20 per cent of elig ible activity which was the difference between 
total forecast activity in a given year and a define d base level of activity.  Benefits amounted to 
A$ 246 million over the life of the scheme.   
 8. Duration
 
  The scheme operated from 1 July 1999 until 30 June 2004.   
 
9. Statistical data permitting an assessment of the trade effects
 
  Unknown.    B. P
HARMACEUTICALS PARTNERSHIPS PROGRAMME  
1. Title of the Subsidy  
  Pharmaceuticals Partnerships Programme (P
3).   
 2. Period covered by the notification
 
 
 Financial years 2005/06 and 2006/07.   
 3. Policy objective and/or purpose of the subsidy
 
  P
3 is aimed at increasing the amount of high qualit y pharmaceutical R&D activity in Australia 
throughout the entire value chain including biotechnology, originator and generic medicines 
companies.    4. Background and authority of the subsidy
 
  On 13 May 2003 the Government announced P
3 would commence on 1 July 2004. Ministerial 
Directions and Guidelines were issued by the Minister for Industry, Tourism and Resources in 
September 2003.    5. Form of the subsidy
 
 
 Under the scheme, grants are awarded comp etitively to companies whose portfolios of 
research and development activity best meet the scheme's merit criteria.   G/SCM/N/155/AUS 
Page 20  
 
  6. To whom the funding was provided
 
  Funding is provided to pharmaceutical a nd biotechnology companies undertaking research 
and development.    
7. Level of subsidy per unit
 
  The total funding value is up to A$150 million fo r the life of the programme.  Assistance is 
limited to 30 per cent of eligible  activity costs up to a maximum grant of A$10 million per company 
over the life of the programme.   
 
 The financial outlay for 2005/06 was A$10.1 million with 12 R&D portfolios assisted.  The 
financial outlay for 2006/07 was A$14.0 million with 13 R&D portfolios assisted.    8. Duration
 
 
 1 July 2004 – 30 June 2009.  Successful a pplicants to the third and final round were 
announced on 3 May 2007.    9. Statistical data permitting an assessment of the trade effects
 
 
 Not known.   
 
VIII.  REGIONAL DEVELOPMENT 
1. Title of subsidy  
 
 Sustainable Regions Programme.   
 2. Period covered by the notification
 
  Financial year 2005/06 and financial year 2006/07.   
 
3. Policy objective and/or purpose of the subsidy
 
  The Sustainable Regions Programme is desi gned to provide an opportunity for regional 
communities to lead their own development by id entifying and addressing priority issues in their 
regions.  The Programme offers a planned, integrated  approach to regions facing economic, social and 
environmental change.   
 4. Background and authority for the subsidy
 
  The Sustainable Regions Programme is the major initiative under the Stronger Regions, A 
Stronger Australia  Statement, announced by the Australian Government in 2001.   
 
5. Form of the subsidy
 
  The Sustainable Regions Programme is a discretionary grants-based programme.    G/SCM/N/155/AUS 
 Page 21 
 
 
  6. To whom and how the subsidy is provided  
  Grants are available to eligible organisations  in each of the 10 designated geographic regions.  
Eligible organisations are those registered under St ate or Commonwealth legislation.  This includes 
private sector, not-for-profit, local government, comm unity, charity and co-operative organisations.   
 
7. Level of subsidy per unit
 
  Total funding for 2005/06 was A$36.779 m illion and for 2006/07 was A$7.052 million.   
 
8.  Duration of the subsidy
 
  The Sustainable Regions Programme was announced  in 2001.  It is currently funded until 30 
June 2009.    
9. Statistical data permitting an assessment of the trade effects
 
  Not known.    
IX. RESOURCES 
A. B
IOFUELS CAPITAL GRANTS PROGRAMME  
1. Title of the Subsidy  
  Biofuels Capital Grants Programme (BCG).    2. Period covered by the notification
 
 
 Financial years 2005/06 and 2006-07.    3. Policy objective and/or purpose of the subsidy
 
  The programme aims to increase the availability of  biofuels for the domestic transport market.  
The programme provides A$37.6 million to fund  one-off capital projects that provide new or 
expanded biofuels production capacity.    4. Background and authority of the subsidy
 
 
 The authority for this programme lies with th e Australian Government Cabinet.  AusIndustry 
manages the contracts for the 6 participants accord ing to Guidelines approved by the Minister.  
 5. Form of the subsidy
 
  The Biofuels Capital Grants Programme is a competitive, merit based grants programme 
targeting biofuels producers.  It provided comp etitive grants from A$800,000 to A$10 million to fund 
one-off capital projects that provide new or expanded biofuels production capacity.   
 6. To whom the funding was provided
 
 
 Funding was provided to biofuel producers, both ethanol and biodiesel.   G/SCM/N/155/AUS 
Page 22  
 
  7. Level of subsidy per unit
 
  Grants are provided at a rate of 16 cents per litre for new or expanded projects producing a 
minimum of 5 million litres of biofuels per annum.  The programme was announced by the Australian 
Government on 25 July 2003.  The total programme value is capped at A$37.6 million.  The estimated 
value for FY 2006/07 is A$5.2 million.   
 8. Duration
 
  The programme was announced on 25 July 2003, two funding rounds were conducted 
in 2004.   
 9. Statistical data permitting an assessment of the trade effects
 
  Not known.    
B. E
THANOL DISTRIBUTION PROGRAMME  
1. Title of the Subsidy  
  Ethanol Distribution Programme.    
2. Period covered by the notification
 
  Financial year 2006/07.    3. Policy objective and/or purpose of the subsidy
 
 
 To support the uptake of ethanol by encouragi ng retail service stations  to install new or 
convert existing pumps to sell E10 blended fuel.    4. Background and authority of the subsidy
 
 
 On 14 August 2006, the Prime Minister announced a A$17.2 million Ethanol Distribution 
Programme to support the uptake of ethanol by encour aging petrol stations to install new or convert 
existing pumps to sell E10 (10 per cent ethanol  in unleaded petroleum) blended fuel. 
  The eligibility period for the infrastructure upgrade was extended by 6 months up to 
31 March 2008.  The Prime Minister's a pproval was received on 1 July 2007.   
  The grants are paid to entitled recipients who a pply for the grants and meet the criteria within 
the guidelines approved by the Minister.    5. Form of the subsidy
 
 
 The programme provides grants of up to A$20, 000 for retail service stations to reduce the 
cost of installing or converting infrastructure to supply E10 fuel.  There are two elements to the programme.  The first being an infrastructure upgr ade grant of up to A$10,000 and a second grant for 
achievement of a sales target within 12 months of completion of the upgrade.  The grants are paid on 
evidence of the infrastructure upgrade being completed and the sales target being achieved 
respectively.    G/SCM/N/155/AUS 
 Page 23 
 
 
  6. To whom the funding was provided  
  Retail service station owners/ operators who upgrade their infra structure to enable the sale 
of E10 are eligible recipients.  Estimated customer base for 2006-07 is 46.  It is anticipated that 450 
to 550 service stations will participate during the life of the programme.   
 
7. Level of subsidy per unit
 
  The programme provides grants of up to A$20, 000 for retail service stations to reduce the 
cost of installing or converting infrastructure to supply E10:   
 
• an Infrastructure Upgrade Grant  of up to A$10,000 for service stations that upgrade existing 
equipment or install new equipment to provide for the sales of E10.  The work must be 
completed between 1 October 2006 and 31 March 2008;   
• a further Sales Target Grant  of up to A$10,000 for those retail service stations that have 
upgraded their site and that have reached a sp ecified E10 sales target within 12 months of 
completing the upgrade.   
 
 The Estimated value for FY 2006/07 is A$0.7 million.    8. Duration
 
  The Programme was announced on 14 August 200 6 with a start date of 1 October 2006 and 
will continue to 30 June 2009.   
 9. Statistical data permitting an assessment of the trade effects
 
  Not known.    
C. LPG
 PROGRAMME  
1. Title of the Subsidy  
  LPG Vehicle Scheme.   
 
2. Period covered by the notification
 
  Financial year 2006/07.    3. Policy objective and/or purpose of the subsidy
 
 
The purpose of the scheme is to encourage the us e of LPG as a transport fuel.  The grants 
provide an incentive for prospectiv e buyers to purchase new LPG vehi cles or to convert an existing 
petrol or diesel vehicle to LPG.    
4. Background and authority of the subsidy
 
  The Prime Minister announced the scheme on 14 August 2006.    5. Form of the subsidy
 
 
 A grant of A$2,000 will be paid following the LPG conversion of a new or used petrol or 
diesel motor vehicle.   G/SCM/N/155/AUS 
Page 24  
 
   A grant of A$1,000 will be paid following the purchase of a new motor vehicle with an LPG 
unit fitted at the time of manufacture of the vehicle.    6. To whom the funding was provided
 
 
 The grants are available to registered owners of a new vehicle with an LPG unit fitted at the 
time of manufacture of the vehicle or registered owners who have a new or used petrol or diesel 
vehicle converted to LPG on or after 14 August 2006.    7. Level of subsidy per unit
 
 
 Under the scheme two different grants are available:    
• A grant of A$2,000 will be paid following the LPG conversion of a new or used petrol or 
diesel motor vehicle.   
• A grant of A$1,000 will be paid following the purchase of a new motor vehicle with an LPG 
unit fitted at the time of manufacture of the vehicle.   
 
 As at 15 July 2007, 61,934 grants have been paid.    8. Duration
 
  The scheme will run from 14 Augus t 2006 to 30 June 2014.   
 
9. Statistical data permitting an assessment of the trade effects
 
  Not known.    X. SUGAR 
1. Title of the subsidy
 
  Sugar Industry Assistance Programme – Canegrowers.   
 
2. Period covered by this notification
 
  Financial years 2005/06 and 2006/07.    3. Policy objective and or purpose of the subsidy
 
 
 The Sugar Industry Reform Programme (S IRP) 2004, which commenced in March 2004, 
provides a combination of short-term measures to help sustain the industry through its immediate 
difficulties and medium to longer-term measures aimed at  promoting industry reform and restructure.   
 4. Background and authority for the subsidy
 
 
 The programme was introduced in March 2004 under the authority of an Australian Government decision. SIRP 2004 expands and bu ilds upon those elements of SIRP 2002 as well as 
introducing several new measures.    G/SCM/N/155/AUS 
 Page 25 
 
 
  5. Form of the Subsidy  
  Assistance was provided to eligible sugar producers in various forms including grants, 
welfare relief payments, counselling services and tax exemptions.  In some cases the measures were provided subject to an income and asset tests.   
 
• Sustainability Grant  – a one-off payment provided to s ugar growers and millers to assist 
transition towards further industry reform.   
 
• Welfare Relief Payments  – payments to eligible growers and harvesters to assist meeting 
basic living expenses.  Applicants are subject to an income and assets tests similar to other 
Australian Government welfare payment schemes.   
 
• Business Planning (Growers and Harvesters)  – funding to help growers and harvesters 
undertake business planning such as obtaining advice from accredited professionals on improving their operations or moving to an alternative production.   
 
• Re-establishment Grants – grants to growers who wish to leave the sugar industry once they 
have completed business planning.  Re-establishm ent grants are paid once the farm property 
has been sold or retired from cane production,  or the farmer has ceased to be involved in 
sugar production.  Applicants are subject to an assets test.   
 
• Retraining – retraining support for producers who leave the industry, as well as harvesters 
and mill workers made redundant through the reforms.   
 
• Grower Restructuring Grants  – grants for producers who choose to remain in the industry 
to undertake significant operational restructuring.   
 
• Industry Oversight Group  – establishment of an Industry Oversight Group to oversee 
progress on the implementation of sugar industry reform, including refinement of reform priorities, developing a strategic industry vision  and aligning regional plans with the industry 
vision.   
 
• Regional Advisory Groups  – establishment of Regional Advisory Groups to drive local 
reforms.   
 
• Regional and Community Projects – funding for regionally-based projects to help the sugar 
industry and/or its dependent communities with  medium to longer-term sustainability.   
 
• Crisis Counselling – provision of funding for crisis counselling services for families in the 
sugar industry to increase the capacity of ex isting financial counse lling and family support 
services in sugar growing regions to respond flexibly to client needs.   
 
• Intergenerational Transfer – establishment of a sugar industr y intergenerational transfer 
scheme to allow eligible producers to hand their farms to future generations without attracting 
disposal of asset penalties.  To be eligible for this assistance the net value of the farm must be 
no more than A$500,000.   
 
6. Provision of the Subsidy
 
  The different assistance measures were provided to eligible sugar producers, harvesters and 
millers.   G/SCM/N/155/AUS 
Page 26  
 
  7. Value of the Subsidy
 
  SIRP Administered Expenditure (A$ million).    
 2005/06 2006/07 Total 
Sustainability 
Grant 73.05 0 73.05 
Restructuring 
Grant 11.919 3.473 15.392 
Retraining 0.043 0.036 0.079 
Re-establishment 
Grant 32.057 15.07 47.127 
Income Support 14.315 0 14.315 
Business Planning 2.457 0.561 3.018 
Industry 
Oversight Group 1.953 2.55 4.503 
Regional and 
Community Projects 2.131 18.461 20.592 
Crisis Counselling  0.764 0.447 1.211 
Intergenerational 
Transfer  0.297 0.347 0.644 
Retraining  0.043 0.017 0.060 
 
 8. Duration
 
  The programme was introduced in March 2004 and is scheduled to conclude in June 2008.   
 
9. Statistical data permitting an assessment of the trade effects
 
  Not known.    XI. TEXTILES, CLOTHING & FOOTWEAR 
A. T
EXTILES , CLOTHING AND FOOTWEAR STRATEGIC INVESTMENT PROGRAMME  
1. Title of the subsidy  
  Textile, Clothing and Footwear Strategic Investment Programme (TCF (SIP) Scheme).    
2. Period covered by the notification
 
  Financial year 2005/06.    3. Policy objective and/or purpose of the subsidy
 
 
 The programme is designed to foster the development of sustainable, competitive TCF 
industries in Australia by encouraging additional investment and innovation.   
  
 
  G/SCM/N/155/AUS 
 Page 27 
 
 
  4. Background and authority for the subsidy  
  Textile, Clothing and Footwear St rategic Investment Program Act 1999  (No. 182, 1999).  It is 
administered by the Department of Industry, Tourism and Resources.    
5. Form of the subsidy
 
  The programme provides incentives in the form of grants to TCF entities.   
 6. To whom and how the subsidy is provided
 
 
 TCF entities must register for the Scheme.  Gr ants are in respect of new TCF plant/building 
expenditure, TCF R&D and product development,  TCF value-added and second-hand TCF plant 
expenditure in respect of restructuring initiatives in  TCF-dependent communities.  They are limited to 
a percentage of eligible expenditure.   
 
7. Level of subsidy per unit  
  Benefits under the TCF (SIP) Scheme will be ca pped at A$ 678 million over five years.  Each 
participant's total benefits under the TCF (SIP) Scheme  in any one year was lim ited to five per cent of 
total eligible revenue in the 12 months preceding the claim year.   
 
 The budget outlay for the 2005/06 financial years was A$ 128.17 million.    8. Duration of the subsidy
 
 
 1 July 2000 to 30 June 2005.   
 9. Statistical data permitting an assessment of the trade effects
 
  Not known.    
B. T
EXTILES , CLOTHING AND FOOTWEAR POST-2005  ASSISTANCE PACKAGE  
1. Title of the subsidy  
  Textile, Clothing and Footwear Post-2005 Assistance Package.    
2. Period covered by the notification
 
  Financial year 2005/06 and financial 2006/07.   
 
3. Policy objective and/or purpose of the subsidy
 
 
 The policy objective of this package is to foster the development of the Australian TCF 
industry so that it is viable and competitive in a freer trade environment.    4. Background and authority for the subsidy
 
 
 Authority for both the TCF Post-2005 (SIP) Scheme and the TCF Small Business Programme 
is the Textile, Clothing and Footwear St rategic Investment Program Act 1999  (No. 182, 1999).  The 
Product Diversification Scheme and the TCF Stru ctural Adjustment Programme are made under 
Executive Powers.  The TCF Post-2005 (SIP) Sc heme, the TCF Small Business Programme are 
administered by the Department of Industry, Tourism and Resources.  The Product Diversification G/SCM/N/155/AUS 
Page 28  
 
  Scheme is administered by the Department of I ndustry, Tourism and Resources and the Australian 
Customs Service.  The TCF Structural Adjustme nt Programme is administered jointly by the 
Department of Industry, Tourism and Resources,  the Department of Employment and Workplace 
Relations and the Department of Tr ansport and Regional Services.   
 
• The TCF Post-2005 (SIP) Assist ance Package includes A$600 million for the 10 year Textile, 
Clothing and Footwear Strategic Investment Programme, comprising:  A$575 million for the 
TCF Post-2005 (SIP) Scheme and A$25 million for the TCF Small Business Programme;   
 
• A$50 million for the 1- year TCF Structural Ad justment Programme, with the three following 
distinct elements:  provision of assistance to re trenched TCF workers;  grant assistance to 
TCF firms who consolidate their operations, through the TCF Restructuring Initiative Grants 
Scheme;  and assistance to communities that have  been adversely affected by TCF closures;  
and 
 
• A$50 million for the Product Diversification Scheme.   
 5. Form of the subsidy
 
 
 The TCF Post-2005 (SIP) Scheme, the TCF Small Business Programme and the TCF Structural Adjustment Programme (which includ es the TCF Restructuring Initiative Grant Scheme) 
provide incentives in the form of grants to TCF en tities;  the Product Diversification Scheme provides 
duty concessions to TCF entities.   
 
6. To whom and how the subsidy is provided
 
  TCF entities must register for the TCF Post-2005 (SIP) Scheme.  Grants are in respect of TCF 
capital investment expenditure and TCF research and development expenditure.  TCF entities must 
apply for assistance under the TCF Small Business Programme, TCF Restructuring Initiative Grants 
Scheme and the Product Diversification Scheme.  Grants under the TCF Small Business Programme 
are to improve the business enterprise culture of TCF small businesses.  Grants under the TCF 
Restructuring Initiative Grants Scheme are in re spect of state-of-the-art second-hand plant or 
equipment and ancillary costs associated with the rest ructuring initiative.  Duty concessions in respect 
of the Product Diversification Scheme are in respect of production.   
 
7. Level of subsidy per unit
 
  Benefits under the TCF Post-2005 (SIP) Scheme  and the Product Diversification Scheme are 
capped at A$ 625 million over 10 years.  Each par ticipant's total benefits under both Programmes in 
any one year will be limited to five per cent of to tal eligible revenue in th e 12 months preceding the 
claim year.  Benefits under the TCF Restructuring Initiative Grants Scheme are notionally capped at 
A$ 20 million over 10 years, a grant recipient cannot  receive a grant greater than the eligible 
expenditure incurred in undertaking the restruct uring initiative.  Benefits under the TCF Small 
Business Programme are capped A$ 25 million over 10 years;  grant support for individual projects is capped at A$50 000.    G/SCM/N/155/AUS 
 Page 29 
 
 
   
 2005/06 2006/07 
 Actual Budget Actual Budget 
TCF Post-2005 (SIP) 
Scheme nil nil A$96.15 
million A$97.50 
million 
TCF Restructuring Initiative Grants Scheme A$2.80 million A$2.80 million A$1.90 million A$1.90 million 
TCF Small Business 
Programme nil nil A$2.45 million A$2.50 million 
TOTAL A$2.80 million A$2.80 million A$100.50 
million A$101.90 
million 
 8. Duration of the subsidy
 
  1 July 2005 to 30 June 2015.    
9. Statistical data permitting an assessment of the trade effects
 
  Not known.     XII. WHEAT 
1. Title of the subsidy
 
  Tasmanian Wheat Freight Subsidy.    2. Period covered by this notification
 
 
 Financial year 2005/2006 and financial year 2006/2007.    3. Policy objective and or purpose of the subsidy
 
 
 The purpose of this subsidy is to compensat e for the higher cost of shipping wheat to 
Tasmania.    4. Background and authority for the subsidy
 
  The subsidy was introduced in 1989 followi ng the deregulation of the Australian wheat 
market.  The Tasmanian subsidy was initially provided to assist Ta smanian cereal processors, end 
users and consumers adjust to deregulation through improvements in storage and handling facilities.   
  Funding for the Tasmanian Wheat Freight S ubsidy Scheme is provided annually through 
Budgetary Appropriations Bill Number 2 .  The Minister for Local Government, Territories and Roads 
is responsible for the terms and conditions of the assistance.   
  There is no specific legislation governing the scheme, however it operates under Ministerial 
directions.  The scheme is administered by the Department of Transpor t and Regional Services 
(DOTARS).   G/SCM/N/155/AUS 
Page 30  
 
  5. Form of the Subsidy
 
  The assistance is provided as a rebate to shippers of bulk wheat to Tasmania.    6. Provision of the Subsidy
 
 
 Shippers of bulk wheat receive one payment proportional to the total tonnage shipped by the 
shipper under the Scheme in a given financial year.     Following a review of the scheme, from 1 July 2008 claims are to be based on wharf-to-wharf 
sea transport costs.   
  The scheme is also amended to provide assistan ce for the shipment of all unprocessed wheat, 
whether it is transported in containers or in bulk.    
7. Value of the Subsidy  
 
  
Period Cap (A$ million) 
2005-2006 1.05  
2006-2007 1.05 
 
 Subject to an annual appropriation by Parliament , up to $1.05M is available in a financial year 
for distribution to shippers of bulk wheat claiming assistance to offset the cost of shipments.   
 8. Duration
 
 
 The programme was introduced in 1989 a nd is currently funde d until 30 June 2010 .   
 9. Statistical data permitting an assessment of the trade effects
 
  (a) Statistics 
 
Year Volume (tonnes) Assistance (A$ million) 
2005/06 Nil Nil 
2006/07 27,714 0.58 
 
 (b) Trade effects 
  The scheme only applies to the cost of bulk wheat freight to Tasmania for domestic consumption and not wheat for export.  As a result there is no trade effect.    SUB-FEDERAL PROGRAMMES 
 Each of the States/Territories provides an i nvestment attraction/assistance programme (which 
are marked with an * asterisk under the individual State/Territory entries) which is designed to attract investment from and between the States.  The following is an estimate of the aggregated level of funding for these programmes for the financial y ears 2005/2006 and 2006/2007 together with the 
estimated number of firms assisted/investment p ackages offered.  Due to  the nature of these 
programmes (which may involve in some cases th e provision of advisory facilitation services), the 
funding levels reflect budget figures as opposed to act ual grants paid.  The range of sectors assisted 
under these programmes is described under the individual State/Territory entries.   
  G/SCM/N/155/AUS 
 Page 31 
 
 
  Financial Year 2005/06 2006/07 
$A million 72.40 95.19 
No. of companies/ 
Packages offered 275 263 
 
 
I. AUSTRALIAN CAPITAL TERRITORY 
1. A.C.T. Business Incentive Fund (ACTBIF)* 
1. Title of the subsidy  
  A.C.T. Business Incentive Fund (ACTBIF).   
 
2. Period covered by the notification
 
  Financial year 2005/06 and financial year 20906/07.    
3. Policy objective and/or purpose of the subsidy
 
  ACTBIF provided incentives to assist the development of significant new business investment and employment in the Australian Capital Territory .  Packages were designed to encourage businesses 
to locate in the ACT, expand an existing busin ess activity or develop a new business activity.   
 
4. Background and authority for the subsidy
 
  The ACT Business Incentive Fund (ACTBIF) re placed the previously administered ACT 
Business Incentive Scheme (ACTBIS) in 2002.  ACTBIS was established in 1995/96 by the ACT 
Government.  The ACTBIS/ACTBIF programme is not sp ecifically authorised under legislation.  It is 
an administrative function that utilises discretionary po wers contained within existing legislation.  For 
example, tax waivers were provided for under the Financial Management Ac t and land grants under 
the Land (Planning and Environment) Act.  Legacy elements are administered by the Business and 
Industry Development section of Chief Minister's Department, which determines the allocation of 
assistance.   
 
5. Form of the subsidy
 
  Assistance is generally provided through tax concessions, including payroll tax; provision of 
land; and training and workforce development.  Othe r forms of assistance may be provided.  Each 
case was assessed on its merits.  Unlike ACTBIS, ACTBIF does not provide cash grants.   
 
6. To whom and how the subsidy is provided
 
  Eligible companies were assessed against a set of evaluation criteria which includes 
suitability of the industry to the ACT;  soundness of the business case; and contribution to the ACT 
economy.  There was to be no undue de triment to existing ACT businesses.   
 7. Level of subsidy per unit
 
  Assistance utilised during financial years 2005/06 and 2006/07 was payroll tax waivers, land 
rent waivers, and cash grants (approved previously under ACTBIS).   
 
 See above table for the aggregated State e xpenditure and number of firms assisted.   G/SCM/N/155/AUS 
Page 32  
 
  8. Duration of the subsidy
 
  ACTBIS (the former programme) was establis hed in the financial year 1995/1996 and ceased 
in 2002, although a number of Agreem ents continue.  ACTBIF was es tablished in 2001 and ceased at 
the end of the 2005/06 financial year.  However exis ting Agreements continue to be managed through 
to their completion.  The last of these Agre ements is due to expire in June 2009.   
 
9. Statistical data permitting an assessment of the trade effects
 
  Not known.   
 
II. NEW SOUTH WALES  
1. Industries Assistance Fund (IAF)* 
1. Title of the subsidy
 
 
 Industries Assistance Fund (IAF).   
 2. Period covered by the notification
 
  Financial year 2005/06 and financial year 206/07.    
3. Policy objective and/or purpose of the subsidy
 
  The IAF aims to promote economic developmen t through assisting new firms to establish in 
NSW;  interstate or overseas firms to relocate in  NSW;  firms to expand or consolidate their 
operations in NSW;  and large-scale infrastructure projects.   
 
4. Background and authority for the subsidy
 
 
 The IAF was established under the State Development and Industries Assistance Act  1966  as 
the vehicle for payments of grants made by the Mi nisterial Corporation for Industry, the operations of 
which are managed by the Minister (or the Minister's delegate).   
 
5. Form of the subsidy  
  Financial assistance, which is considered in limited and special circumstances only, on a case-
by-case basis, may take the form of partial tax rebate s;  facility establishment costs;  relocation costs;  
contributions to infrastructure;  skills training;  or  contribution to feasibility/studies.  The assistance is 
in the form of partial rebates of state taxes and ther efore is cost neutral in terms of the impact on state 
revenue.    6. To whom and How the Subsidy is Provided
 
 
 Assistance is provided to eligible compan ies who will undertake new investments in 
New South Wales.  To be eligible, an investment  must provide significant net economic benefits (for 
example, through substantial increases in employme nt and investment, and the introduction of new 
technologies);  be footloose;  and be strategic to New South Wales.    
 In 2005/06 and 2006/07, expenditure from the Fund assisted companies across a range of 
sectors, including information technology, manufacturing, film, defence, ICT, finance and medical.      G/SCM/N/155/AUS 
 Page 33 
 
 
  7. Level of subsidy per unit  
  See above table for the aggregated State e xpenditure and the estimated number of firms 
assisted for financial year 2005/06 and financial year 2006/07.    
8. Duration of the subsidy
 
  The IAF is an ongoing programme.  The dura tion of IAF assistance to companies is agreed 
between the project proponent and the Department of  State & Regional Development.  It reflects in 
part the lead and gestation times associated with th e particular investment proposal, and is generally 
for a period of up to five years.   
 9. Statistical data permitting an assessment of the trade effects
 
  Not known.   
 
2. Regional Business Development Scheme 
1. Title of the subsidy
 
  Regional Business Development Scheme.    
2. Period covered by the notification
 
  Financial year 2005/06 and financial year 2006/07.   
 3. Policy objective and/or purpose of the subsidy
 
 
 The Regional Business Development Scheme (RBDS) is used by the NSW Department of State and Regional Development to assist business st art-ups, expansions or relocations in regional 
New South Wales.  The Scheme provides assistan ce to help eligible co mpanies offset initial 
establishment costs that may prevent a viable  regional business location being selected.   
 
4. Background and authority for the subsidy
 
  The Regional Development Act 2004 provides the legislative framework for assisting growth 
in regional New South Wales.  The RBDS operates as an administrative function of the NSW Department of State and Regional Development.   
 
5. Form of the subsidy
 
  Financial assistance may be granted as an estab lishment grant;  a grant for the expansion of 
existing premises/facilities;  locatio n feasibility analysis; business pla nning and technical consultancy 
assistance;  plant and equipment/key personnel removal costs;  skills training;  contributions towards 
infrastructure costs such as improvi ng public road access to the site, etc;  offsets to local government 
charges;  and/or as contribution to regional opport unities investigation, payroll and land taxes, or 
stamp duty.    6. To whom and how the subsidy is provided
 
 
 Assistance is provided to eligible companies that  satisfy at least one of the following criteria:  
potential for a substantial increase in employmen t; relocation from outside New South Wales or 
Sydney;  significant new investment in operations ;  setting up of a new industry/business operation;  
and/or clear improvement in the competitiveness of an existing business.   G/SCM/N/155/AUS 
Page 34  
 
  7. Level of subsidy per unit
 
  In 2005/06 and 2006/07, the NSW Departme nt of State and Regional Development 
secured 92 and 91 regional projects for each respective  year under the Scheme.  The Scheme assisted 
companies across a range of industry sectors, including manufacturing, services, agribusiness, food 
processing, and timber processing.  Aggregated st ate expenditure was A$3.865 million in 2005/06 and 
A$3.097 million in 2006/07.    8. Duration of the subsidy
 
 
 The RBDS was introduced in 1989 and is an ongoing programme.  The duration of the RBDS 
assistance to companies is agreed  between the project proponent and the NSW Department of State 
and Regional Development, and will reflect in part the lead and gestation times associated with the 
particular investment proposal.    
9. Statistical data permitting an assessment of the trade effects
 
  Not known.    
III. NORTHERN TERRITORY  
1. Industry and Business Assistance* 
1. Title of the subsidy
 
  Industry and Business Assistance.    2. Period covered by the notification
 
 
 Financial year 2005/06 and financial year 2006/07.   
 3. Policy objective and/or purpose of the subsidy
 
  To support the growth and development of th e Northern Territory's industrial and commercial 
base through the provision of appropriate and prudent assistance to target industries.  To assist and 
encourage the development, expa nsion and diversification of pr imary, secondary and tertiary 
industries in the Northern Territory by providing gr ants to eligible new or expanding business.   
 4. Background and authority for the subsidy
 
 
 There is no legislation determining Industry and Business Assistance.  The programme is 
administered, on a case-by-case basis, by the Depa rtment of Business, Industry and Resource 
Development.    5. Form of the subsidy
 
 
 Grants.    6. To whom and how the subsidy is provided
 
 
 Assistance eligibility is not restricted by sector, category or enterprise, although each proposal 
must be of a commercially viable nature and ha ve the ability to demonstrate potential growth and 
benefit to the Northern Territory.  Assistance is generally available to businesses undertaking a 
particular endeavour (i.e. a special project).    G/SCM/N/155/AUS 
 Page 35 
 
 
  7. Level of subsidy per unit  
  See above table for the aggregated State e xpenditure and the estimated number of firms 
assisted for financial year 2005/06 and financial year 2006/07.    
8. Duration of the subsidy
 
  The programme is ongoing.    9. Statistical data permitting an assessment of the trade effects
 
 
 Not known.    
IV. QUEENSLAND 
1. Queensland Investment Incentives Scheme (QIIS)* 
1. Title of the Grant Scheme
 
  Queensland Investment Incentives Scheme.    2. Period covered by the notification
 
 
 Financial year 2005/06 and financial year 2006/07.   
 3. Policy Objective and/or purpose of the subsidy
 
  The Queensland Investment Incentives Scheme ai ms to generate sustainable investment and 
jobs in Queensland by securing selected projects wh ich the Government considers to have strategic 
merit and that, without Government intervention, would not occur in Queensland.    4. Background and authority for the subsidy
 
  The Queensland Investment Incentives Scheme is  administered by the Department of State 
Development.  There is no legislative authority for the scheme.   
 5. Form of the subsidy
 
  Incentives potentially offered to selected projects include:   
 
• Payroll tax and land tax refunds – Considerati on may be given to refunding part of payroll 
and land taxes directly related to a project, in curred and paid by the proponent of the project 
over the early years of operation;   
 
• Stamp duty refund – Consideration may be given to refunding in part or in full Queensland 
Stamp Duty incurred and paid in relation to the establishment of the project;  and 
 
• Establishment grants – A grant may be offered to  offset part of any establishment, relocation 
or training costs associated with the project that  is paid by the proponent of the project.   
    G/SCM/N/155/AUS 
Page 36  
 
  6. To whom and how the subsidy is provided
 
  The scheme allows the State to  offer incentives to proponents of selected projects which the 
Government considers have strategic merit to Queensland.    
7. Level of grant
 
  See above table for the aggregated State e xpenditure and number of firms assisted.   
 8. Duration of the grant
 
 
 Relevant contracts are currently planned through to 2013.    9. Statistical data permitting an assessment of the trade effects
 
 
 Not known. 
 
2. Queensland Industry Development Scheme 
1. Title of the Grant Scheme  
  Queensland Industry Development Scheme.   
 
2. Period covered by the notification
 
  Financial year 2005/06 and financial year 2006/07.   
 
3. Policy objective and/or purpose of the subsidy
 
  The Queensland Industry Development Scheme  is designed to provide a vehicle for 
State Government to work with industry and bus inesses to maximize economic growth by supporting 
projects that improve business performance and assi st in the transition to a globally competitive 
business environment, including creation of  more jobs and business expansion.   
 
4. Background and authority for the subsidy
 
  The Queensland Industry Development Scheme  is administered by the Department of 
State Development on behalf of the Queensland Govern ment.  There is no direct legislative authority 
for this programme, however the schem e operates in conjunction with the Industrial Development 
Act 1963 (Qld) .  The scheme is funded as a special budget line item for the Department.   
 5. Form of the subsidy
 
  Assistance is provided in the form of a cash grant.   
 
6. To whom the subsidy is provided
 
  Established manufacturing firms or groups operating in Queensland.   
 
7. Level of subsidy per unit
  
  In the financial year 2005/06, 115 grants were approved for a total of A$ 4.72 million.  In the 
financial year 2006/07, 80 gr ants were approved for a total of A$ 4.03 million.   
  G/SCM/N/155/AUS 
 Page 37 
 
 
  8. Duration of the scheme  
  The Queensland Industry Development Scheme  commenced in 1998 and is still currently 
active.  However, it will phase out under its current format during 2007/08.   
 
9. Statistical data permitting an assessment of the trade effects
 
  Not known.    
V. SOUTH AUSTRALIA 
1. Industry Investment and Attraction Fund* 
1. Title of the subsidy
 
  Industry Investment and Attraction Fund.    
2. Period covered by the notification
 
  Financial year 2005/06 and financial year 2006/07.   
 3. Policy objective and/or purpose of the subsidy
 
 
 The Industry Investment and Attraction Fund  (IIAF) ceased in July 2005.  There remain 
outstanding financial commitments that were entere d into prior to the fund being wound down.  There 
were no new commitments in 2005/06 and 2006/07.     During its operation, the IIAF was aimed at encouraging investment to increase 
competitiveness and the creation of employment.  Fi nancial assistance and investment incentives were 
provided to encourage further value added activit y or to encourage firms to relocate to South 
Australia.    4. Background and authority for the subsidy
 
 
 Industries Development Act 1941 .  Approval authority was tiered according to the value of the 
proposed subsidy, ranging from Cabinet (Executive G overnment), industry minister(s) and through to 
industry department.     It is the policy of the South Australian G overnment to refer all firm-specific industry 
assistance proposals valued over $500,000 to the Industries Development Committee for its 
consideration prior to seeking Government approval.    5. Form of the subsidy
 
  In financial years 2005/06 and 2006/07, financial commitments were in the form of grants and 
loans.   
  Applicants were assessed on a case-by-case basis an d the total value and form of the incentive 
package was based on an assessment  of the net economic benefits and strategic importance of the 
project to South Australia.   G/SCM/N/155/AUS 
Page 38  
 
  6. To whom and how the subsidy is provided
 
  Funding under the IIAF was previously availabl e to established firms seeking to establish, or 
expand existing operations, in South Australia which had a reasonable prospect of long term viability 
and which were involved in th e goods and services sector.   
 
 The companies assisted during the reporting peri od operated in a number of different industry 
sectors including defence and aerospace, financial ser vices, ICT, biotechnology and manufacturing.   
 7. Level of subsidy per unit
 
 
 See above table for the aggregated State e xpenditure and the estimated number of firms 
assisted for financial year 2005/06 and financial year 2006/07.    8. Duration of the subsidy
 
 
 The operation of the IIAF is now restricted to meeting existing commitments, the majority of which are anticipated to be paid out by 2010.    9. Statistical data permitting an assessment of the trade effects
 
 
 Not known.   
 
VI. TASMANIA 
1. Investment Attraction Programme* 
1. Title of the subsidy  
 
 Investment Attraction and Industry Development Programme.    2. Period covered by the notification
 
  Financial year 2005/06 and financial year 2006/07.   
 
3. Policy objective and/or purpose of the subsidy
 
  The programme is aimed at the developmen t of a strong and innovative business culture 
resulting in increased investment and job creation;  the attraction of new investment to the State;  
increased infrastructure development;  stimulating innovation and business development and 
increased local, national and internationa l opportunities for business in Tasmania.   
 4. Background and authority for the subsidy
 
  The legislative basis is the Tasmanian Development Act 1983  with any funds expended under 
the Investment Attraction and Industry Developm ent Programme being appropriated under the budget 
of the Department of Economic Development.    5. Form of the subsidy
 
 
 Assistance can take the form of grants, concessional loans, payroll tax exemptions, rental 
assistance, reduced stamp duty, workforce training a nd development or feasibility/technical studies.   
   G/SCM/N/155/AUS 
 Page 39 
 
 
  6. To whom and how the subsidy is provided  
  Applications are assessed on a case-by-case basis.  Incentive packages are based on an 
assessment of the net economic benefits (increases in employment, increase in investment and the introduction of new technologies), the long-term viab ility of the project and the strategic importance 
of the project to the State.   
 7. Level of subsidy per unit
 
  See above table for the aggregated State e xpenditure and the estimated number of firms 
assisted for financial year 2005/06 and financial year 2006/07.  Industry sectors assisted included 
food, manufacturing, ICT, resources, infrastructure,  contact centres, small business, Antarctic and 
film television and multimedia.    8. Duration of the subsidy
 
 
 The investment attraction and industry devel opment programme is ongoing.  Assistance to 
companies is time-specific, ag reed upon between the proponent a nd the Department of Economic 
Development.    9. Statistical data permitting an assessment of the trade effects
 
 
 Not known.    
VII. VICTORIA 
1. Investment Attraction Programme* 
1. Title of the subsidy
 
  Investment Attraction Programme.    2. Period covered by the notification
 
 
 Financial year 2005/06 and financial year 2006/07.   
 3. Policy objective and/or purpose of the subsidy
 
  The programme provides facilitation services for key investment projects and regional 
headquarters, and seeks to attract additional inv estment for Victoria leading to the balanced 
development of the State.  Investment facilitation and assistance includes site identification, selection, 
industrial relations and employment advice and inform ation on costs in different locations.  In very 
limited circumstances, taxable grants may be provided.    4. Background and authority for the subsidy
 
 
 The  Economic Development Act 1981 is the legislative basi s; that Act was repealed on 
27 April 1994.  Since this time, any funds expende d under the Investment Attraction Programme have 
been appropriated under the normal global budget of  the Department of Innovation, Industry and 
Regional Development.   G/SCM/N/155/AUS 
Page 40  
 
  5. Form of the subsidy
 
  Where financial assistance is provided, it is in th e form of taxable grants to offset payroll and 
land tax, provision of infrastructur e and assistance with training.   
  
6. To whom and how the subsidy is provided
 
  Where financial assistance is provided, companies must demonstrate a certain level of capital expenditure.  Eligibility for the scheme is not limited to any sector or category of enterprise or to any 
region.   
 
7. Level of subsidy per unit
 
  See above table for the aggregated State e xpenditure and the estimated number of firms 
assisted for financial year 2005/06 and financial year 2006/07.    
 The programme provided assistance to a number of industry sectors including automotive;  
food, textiles, clothing and footwear;  informati on technology and telecommunications and aerospace.   
 8. Duration of the subsidy
 
 
 The programme is ongoing.   
 9. Statistical data permitting an assessment of the trade effects
 
  Not known.  
 
VIII.  WESTERN AUSTRALIA 
1. Investment Incentive Scheme* 
 (formerly the Industry Incentive Scheme) 
 1. Title of the subsidy
 
 
 Investment Incentive Scheme.    2. Period covered by the notification
 
 
 Financial year 2005/06 and financial year 2006/07.   
 3. Policy objective and/or purpose of the subsidy
 
  The aim of the Investment Incentive Scheme is  to foster economic development in Western 
Australia by facilitating major capital investment in  new projects, products or services of strategic 
importance to the State that would not otherwise oc cur, and for which the wider economic benefits of 
the investment outweigh the costs to Government.     The Government's approach in this scheme is based on the appropriate use of targeted 
investment incentives as a tool for strategic industry development that adds value and diversity to the 
State's economic base and builds on the State' s competitive and comparative advantages.   
   G/SCM/N/155/AUS 
 Page 41 
 
 
   The approach to financial assistance is not about picking winners, subsidising business or 
providing business welfare.  The threat of re-locatin g to another State or country is not considered a 
valid reason for assistance.  Additionally, the schem e is not aimed at supporting investment for which 
there is no identified impediment.    
4. Background and authority for the subsidy
 
  Departmental budget.  The scheme is admini stered by the Department of Industry and 
Resources.    
5. Form of the subsidy
 
  Possible components include capital invest ment establishment grants (interest-free 
convertible loans);  concessional or interest free lo ans; provision of public in frastructure necessary for 
the project;  and provision of land.  The maximum amount of assistance remains at the discretion of 
the Government.   
 6. To whom and how the subsidy is provided
 
  Eligibility for incentives will be assessed  against the following criteria.   
 
 The project's potential to expand and/or diversify the Western Australian economy;  
contribute to net economic benefits to the State;  have long-term viability;  demonstrate no significant 
detriment to existing Western Australian industry;  provision of security, and its potential for capital 
investment or job creation.    
7. Level of subsidy per unit
 
  During 2005/06 and 2006/07, the information techno logy sector was assisted by the scheme.  
See above table for the aggregated State expenditure  and the estimated number of firms assisted for 
financial year 2005/06 and financial year 2006/07.    
8. Duration of the subsidy
 
  The programme is ongoing.    9. Statistical data permitting an assessment of the trade effects
 
 
 Not known.    
2. Industry Relocation Scheme 
1. Title of the subsidy
 
 
 Industry Relocation Scheme.   
 2. Period covered by the notification
 
  Financial year 2005/06 and financial year 2006/07.  The programme ceased in 
December 2005. G/SCM/N/155/AUS 
Page 42  
 
  3. Policy objective and/or purpose of the subsidy
 
  The Industry Relocation Scheme aimed to  provide financial incentives to existing 
manufacturing, value adding, advanced technology or service based industries to totally relocate operations from Perth to a regional area as defined in the Regional Development Commission Act 
1993 ;  or partially relocate operations from Perth to a regional area;  or expand operations by 
establishing a new regional facility as opposed to the expansion of their current Perth premises.   
 4. Background and authority for the subsidy
 
 
 There was no specific legislation.  The scheme was funded through budget appropriations 
allocated to the Department of Local G overnment and Regional Development.   
 5. Form of the subsidy
 
 
 The incentive packages offered to an eligible project comprised one or more components 
tailored to suit both the specific requirements of the project proponents and the Government's 
objectives with respect to the project.  Possibl e components included capital establishment grants 
(interest-free convertible loans);  concessional or  interest-free loans;  provision of public 
infrastructure necessary for the project;  provision of land either by way of a grant or a loan on a concessional basis;  provision of buildings either by wa y of a grant or a loan on a concessional basis;  
or state tax rebates.   
 6. To whom and how the subsidy is provided
 
  Eligibility criteria for any project included: proponents must have an established business 
with at least three full time employees and an annual turnover greater than $350,000;  the project must 
involve existing manufacture, value adding, ad vanced technology or service based businesses 
(primary agricultural production, fishing, retail a nd the extractive component of mining are excluded);  
the project should relate to the relocation or expa nsion of a Perth-based business;  have appropriate 
equity funding and be viable in the long term w ith net economic benefits to the State, including the 
creation of employment opportunities in the chosen region.   
 
7. Level of subsidy per unit
 
  During financial year 2005/06 and financial year 2006/07 no loans were approved.   
 
8. Duration of the subsidy
 
  The programme ceased in December 2005.    9. Statistical data permitting an assessment of the trade effects
 
 
 Not known.   
  
__________